Pennsylvania House extends liability fund relief

Doctors hope the Senate will OK the measure, which they see as a way to keep physicians in the state.

By Tanya Albert, AMNews staff. Nov. 8, 2004.

Pennsylvania doctors saddled by high medical liability insurance rates are one step closer to another reprieve from having to pay into the state fund that covers catastrophically large awards or settlements.

The Pennsylvania House in October passed a bill that would extend through 2005 and 2006 the abatement that physicians were given on their 2003 and 2004 bills from the Medical Care Availability and Reduction of Error Fund, known as Mcare.

At press time, though, the state Senate still needed to pass the bill by the scheduled Nov. 30 adjournment date before it could proceed to Gov. Edward G. Rendell's desk.

The governor won't comment on whether he will sign legislation until it's before him, a spokeswoman said. But Rendell was the one who brought the idea of an abatement for physicians to the Legislature.

When the original abatement passed, many doctors said the temporary relief from paying thousands of dollars into Mcare, which helps pay jury awards and settlements that exceed what insurance covers, allowed them to keep their practices open.

Without continued help, doctors fear they will again be forced to assess whether they can keep on practicing in Pennsylvania, one of 20 states that the AMA says is experiencing a medical liability insurance crisis. The high cost and lack of availability of insurance has forced doctors in those states to cut high-risk procedures, retire early or move out of state.

"This is extremely important," said Pennsylvania Medical Society President William W. Lander, MD. "If it doesn't pass, it means physicians are going to have to pay a heck of a lot more money. ... They would reduce work or get out of town."